Employment effects of innovation in developing countries: A summary

r4d Working Paper 2016/2 by Doris Oberdaberning

ABSTRACT:

Is  technological  progress  causing  inequality  and  unemployment  in  developing  countries?  In  this  paper  we  survey  the  literature  on  the  effects  of  innovation  and  technological  change  on employment,  demand  for  skills,  and  wages.  We  revisit  theoretical  arguments  of  the  effects  of  innovation on labor market outcomes  such as employment, skill premia, and the life span of jobs, and summarize the findings of empirical studies. We pay special attention to the empirical literature for developing countries. We also visit some arguments concerning the role of policy in this context.